Surprisingly, hedge funds outperformed a traditional 60/40 portfolio in 2024 in what was a significant up year for the markets. Goldman Sachs reports that hedge funds typically beat traditional portfolios in down, flat and moderate up markets, making their 2024 outperformance all the more impressive.
Broad-based gains for hedge funds
According to the firm’s recent report, “Great Expectations: The Current State of the Hedge Fund Industry and the Outlook for 2025,” 2024 was “unequivocally one of the best years for the hedge fund industry in recent memory.”
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The firm reported that despite double-digit market returns for the second straight year, hedge funds managed to outperform, delivering broad-based gains spanning multiple strategies with strong alpha.
While...
